GBPEUR has been trading in a much tighter range this week hovering around 1.30. Last week’s low levels of 1.2890 have not been retested but the highs of close to 1.33 indicate the rate is not sufficiently strong enough to hold its own on the back of other data releases we are confined to. Expectations are for the rates to respond more to political uncertainty in the UK this year rather than economic data. The big worry is the UK Brexit which at present we know very little about. The two key issues at this time would be the worry over the timing or date of the Referendum which could be as early as June or 2017, the other is the governments position. Much will hinge the extent to which the government has renegotiated the UK’s relationship with the EU. Until we get clarification of these issues sterling is likely to be underfunded and susceptible to further weakness.
Big economic news next week will be the Bank of England quarterly Inflation Report due next week, the economic news from the Eurozone could be greater however as markets eye the possibility of the ECB revising their QE program. If you have a transfer to consider please let me know by emailing [email protected] or calling 01494 787 478. I am very sure I can offer you some helpful useful information to aid you in any decision making for your money transfers.